UBA up 64% in 1 yr poised for further gains

United Bank for Africa (UBA) plc, has come a long way since bouncing off the N3 per share mark.

The stock of the tier one lender has climbed a wall of worry and is up 64 percent in one year.

Along the way UBA has managed to close some of the valuation gap between it and other tier one lenders like Zenith and Guaranty Trust Bank (GTB), and currently trades at circa 0.5xs book value compared to a lowly 0.2xs book a year ago.

Technically the chart looks sound as the stock is bouncing off the 50 day moving average with little to no resistance expected till the N8 per share mark.

Investor sentiment on the stock is also somewhat neutral to bearish which should give it further room to run.

Speaking with management BMI was able to gather that UBA is focused on executing its strategy and management believes the market will eventually appreciate its diverse income generating levers, especially its rest of Africa operations.

 

PATRICK ATUANYA